Bitcoin

The Bitcoin network has recently reached an all-time high in terms of hash rate, solidifying its security and robustness. However, this surge in hash rate comes at a cost for miners, who are facing a significant decline in revenue, similar to the challenges seen during the November 2022 FTX collapse. 
According to data from Blockchain, on August 18, 2023, the Bitcoin network’s hash rate soared to remarkable levels, breaking records with over 414 exahashes per second (EH/s). This remarkable achievement represents a staggering 54% increase since the beginning of 2023 and a remarkable 80% surge over the past year. The heightened hash rate underscores the network’s stability and security, driven by the collective power of miners worldwide. Source : Blockchain(dot)com 
Whereas, the hash price has plummeted to just $0.060 per TH/s per day, according to HashPriceIndex. This value stands at nearly half of what it was in early May, during the Bitcoin ordinals inscription frenzy that drove demand for block space. Analysts are pointing to the fact that the increasing efficiency of new mining rigs is contributing to the overall hash rate surge, yet this efficiency paradoxically heightens the revenue challenges for miners. 
Market analysts like Dylan LeClair acknowledge the continuous production of more efficient mining rigs, indicating that the focus might soon need to shift towards a necessary increase in the price of Bitcoin itself. LeClair suggests that for mining to remain profitable at these high hash rates, Bitcoin’s price must rise to align with the heightened hash rate. Source: Glassnode 
As the miners are facing difficulties in generating revenue in mining as the hash rate reached a time high, in a <a href="https://news.todayq.com/kyrgyzstan-is-set-to-develop-hydro-powered-crypto-mining-to-boost-its-economy/" rel="noopener noreferrer nofollow">report</a> by Todayq News on July 29, 2023, Kyrgyzstan’s President Japarov approved a $20 million hydro-powered crypto-mining facility at Kambar-Ata-2. Aims to utilize wasted energy, benefiting the economy and citizens. 
Reportedly, Bitcoin miners have resorted to raising funds through stock sales during the challenging bear market. In the second quarter, 12 major publicly traded mining companies reportedly managed to secure around $440 million through such sales, as reported by Bloomberg on August 24. 
🚨🚨Major 
However, experts like Mark Jeftovic of the Bitcoin Capitalist newsletter caution against excessive dilution of shareholders, emphasizing that the rate of dilution should not outpace Bitcoin’s price growth. 
Recently, Todayq News <a href="https://news.todayq.com/vanguard-has-poured-a-total-of-620-million-into-bitcoin-mining-firms-marathon-and-riot/" rel="noopener noreferrer nofollow">reported</a> that the second largest assets management firm Vanguard Group has raised its investment in Bitcoin mining companies Marathon Digital Holdings and Riot Blockchain. 
The recent investment shows that Vanguard now holds 17.5 million shares in Marathon, a 60% increase from February, and 17.9 million shares in Riot Blockchain, an 18% increase. This amounts to a 10.31% stake in Marathon and 10.24% in Riot, with a total combined investment value of approximately $619.7 million. 
© Todayq News

Bitcoin miners face a revenue dip as the hash rate skyrockets

Todayq News

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